The total output of the nation’s computer manufacturing sector last year reached NT$321.5 billion (US$10.54 billion), its highest level since 2003, the Ministry of Economic Affairs said yesterday.
The ministry attributed last year’s strong performance to easing component shortages, as well as emerging technologies such as the Internet of Things (IoT), artificial intelligence and cloud computing driving up demand in industrial supply chains.
Servers, which last year accounted for 60.3 percent of the computer manufacturing sector, performed the best with an output of NT$194 billion.
Photo: CNA
That was a 59.9 percent year-on-year increase in output, and came on the back of growing orders received by Taiwanese manufacturers for cloud computing services in the US, the ministry said.
Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) said that demand for remote processing came primarily from US companies, such as Meta Platforms Inc’s Facebook, Amazon.com Inc and Alphabet Inc’s Google.
However, due to an ongoing US-China trade dispute and information security considerations, many of orders have gradually shifted away from China, driving a substantial increase in demand for servers made by Taiwan-based manufacturers, Huang said.
Meanwhile, laptop computers accounted for 22.5 of the sector last year, with an output of NT$72.4 billion, up 25.8 percent year-on-year.
This was followed by industrial computers at NT$50.1 billion, with an annual increase of 45.3 percent and comprising 15.6 percent of the overall sector.
The ministry attributed the sharp year-on-year growth for industrial computers to robust demand for industrial IoT devices and medical applications, as well as retailers undertaking digital transformations.
In the first three months of the year, the US was Taiwan’s largest computer export market at 65.6 percent, followed by China (including Hong Kong) at 5.8 percent and the Netherlands at 5.4 percent.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process